Court of Accounts' Report: Romania's public debt reaches 44.1 pct of GDP, on Dec 31, 2014

Romania's public debt stood at 44.1 per cent of the Gross Domestic Product (GDP), 65.94 billion euros, on December 31, 2014, compared with the 54.38 billion euros recorded at end-2012, showed the Court of Accounts' Report on the management of the public debt over 2012-2014 by the Ministry of Public Finances (MFP), as published on Friday.

Photo credit: (c) CRISTIAN NISTOR / AGERPRES PHOTO

'Romania's public debt maintained its upward trend in the targeted time span, having reached 295,578.7 million lei (65,946.5 million euros) on December 31, 2014, compared to the 240,842.5 million lei (54,382.2 million euros) recorded on December 31, 2012),' shows the document.

Thus, the euro-denominated public debt per capita saw a significant growth in the abovementioned interval, by 608.3 euros per capita, so that, at the end of last year it reached 3,313.9 euros per capita, compared with 2,705.6 euros per capita on December 31, 2012.

'Given the ratio between the public debt and the GDP, we noticed an increase in the public debt volume, from about 40.4 per cent of the GDP, in 2012, up to 41.9 per cent in 2013 and 44.1 per cent in 2014, with a depreciation of 3.7 percentage points. Moreover, in the same period, the increase in the public debt exceeded the need for deficit financing. Despite the debt-to-GDP ratio being much below the alert level of 60 per cent (as stipulated in the Maastricht Treaty, which is the European Union Treaty published in the Official Journal C191 of July 29, 1991), we think that, given that the governmental public debt continues to grow constantly, outperforming the growth rate of the economy, the solvency risk will grow,' the Court of Accounts warned.

Over 2012-2014, the domestic governmental public debt was...